Allegiant Travel Co Stock Price, News & Analysis

Allegiant Travel Company (NASDAQ: ALGT) has reported preliminary traffic results for November 2020, revealing a 38% decrease in passengers compared to November 2019, totaling 682,976. Average daily bookings dropped from $3 million in October to $2.2 million in November due to rising COVID-19 cases and new travel restrictions. The load factor fell to 57.6%, down 22.8 percentage points from the prior year, while available seat miles decreased by 13.6%. Despite these challenges, Allegiant anticipates a 15% reduction in fourth-quarter capacity compared to last year.

On November 17, 2020, Allegiant (NASDAQ: ALGT) announced the introduction of 15 new nonstop routes, including connections to Orange County, California and Spokane, Washington. To celebrate, one-way fares start at $39. The routes will enhance Allegiant's network, offering more convenient travel options for customers. Notably, new flights from Las Vegas include destinations such as Asheville and Newark. The company promotes affordability with fares lower than average domestic roundtrip tickets, with service commencing in February and March 2021.

AE Industrial Partners has finalized a sale and leaseback deal with Allegiant Air involving four Airbus A319 aircraft, marking the first aircraft leasing transaction from its Aerospace Opportunities Fund. The transaction aims to enhance Allegiant's operational flexibility in a challenging aviation environment. AEI's senior director expressed optimism about Allegiant's business model, anticipating a strong recovery in 2021 as travel demand increases. Specific transaction terms were not disclosed, but both companies anticipate ongoing collaboration.

Allegiant Travel Company (NASDAQ: ALGT) reported preliminary passenger traffic results for October 2020, indicating continued challenges due to the pandemic. The airline served 773,275 passengers, reflecting a 30.1% decrease from October 2019's 1,106,576. Revenue passenger miles fell 29.0% to 671,025, while available seat miles also decreased by 6.4%. The load factor dropped significantly, down to 63.1% from 83.1% a year earlier, representing a 20.0 percentage points decline. Departures were down 9.5%, and the average fuel cost was estimated at $1.29 per gallon.

Allegiant Travel Company (NASDAQ: ALGT) reported a 54% decline in total operating revenue for Q3 2020, totaling $201 million, down from $436.5 million in Q3 2019. The net loss reached $29.1 million, resulting in a loss per share of $1.82. Despite challenges, the company saw a reduction in operating expenses by 35.8% and recorded positive cash flows in September. Going forward, Allegiant aims to maintain a cash balance of $850 million, implementing rigorous cash management strategies. The airline aims for better performance, buoyed by improved consumer confidence in air travel.

Allegiant Travel Company (NASDAQ: ALGT) has announced its third-quarter 2020 financial results conference call scheduled for October 28, 2020, at 4:30 p.m. EDT. Investors can access the live broadcast via the company's Investor Relations website, where the webcast will also be archived. Allegiant is recognized for connecting small-to-medium cities to major vacation destinations with non-stop flights and low fares, leveraging an all-Airbus fleet. More details can be found at allegiantair.com.

Allegiant Travel Company (NASDAQ: ALGT) reported its preliminary passenger traffic results for September 2020 and the third quarter. The average daily cash burn was approximately $1.3 million, with gross bookings exceeding $2 million per day. The company paid about $15 million to Sixth Street Partners related to a loan agreement, impacting cash burn. Liquidity increased to over $850 million. However, third-quarter passenger numbers fell by 46.6% compared to 2019, with a load factor of 49.7%.

Allegiant Travel Company (NASDAQ: ALGT) has closed a private offering of $150 million in 8.500% Senior Secured Notes due 2024. The Notes are backed by security interests in nearly all assets except aircraft and certain other assets. With this issuance, Allegiant's total secured debt rises to approximately $693 million, alongside a Term Loan of $543 million, both bearing an average interest rate of about 4.5%. Proceeds will be used for general corporate purposes. This offering was made under Rule 144A and Regulation S, catering to institutional and non-U.S. buyers.

Allegiant Travel Company (NASDAQ: ALGT) announced a private offering of $150 million in 8.5% Senior Secured Notes due 2024, expected to be issued on October 7, 2020. The Notes will be guaranteed by the Company's subsidiaries, excluding minor ones, and secured by most of the Company's assets, excluding aircraft. This brings Allegiant's total secured debt to approximately $693 million at a 4.5% average interest rate. The proceeds will fund general corporate purposes. Allegiant opted not to pursue a $276 million loan under the CARES Act.